The buildings insurance caters for your property in case of a disaster that might damage your house beyond repair. This insurance takes care of rebuilding costs but here’s the catch, the disaster must have been beyond your control, mostly caused by natural disasters such as earthquakes and lightning.
In most cases, mortgage providers will require you to sign up for this as it will put them in a better and secure position to recover damages in the event of such losses. They look at it as a collateral or form of security for the mortgage that they provide you.
Properties are prone to various forms of natural disasters and property owners need to have that kind of worry off their shoulders. That is where building insurance come in. Great building insurance policies go an extra mile to cover outdoor structures such as greenhouses, sheds, gazebos, decks and garages. Boundary walls, fences and gates are usually left out by most insurers and it is advisable that you understand the terms and conditions of the contract.
A good building insurance cover should cover the total repair or rebuild cost in case of the following:
• Falling trees
• Lightning and storm damages
• Fire and explosion that may occur from gas leaks
• Freezing or bursting of plumbing
• Earthquake
• Damage through vandalism or collision
Importance of buildings insurance
If your building is under mortgage loan, your lender will most likely want you to show that you have sufficient buildings insurance. This will play a huge role in safeguarding all the valuables in your home. Note that this cover must indicate the date when the exchange of agreements took place until the mortgage’s full term.
In some instances, your mortgage provider may tempt you with buildings insurance but you should not be pressurized to take it unless there is a prior agreement indicating that you must specifically purchase their insurance.
Note that if you do not buy the buildings policy from your mortgage provider, you might be charged a non-standard fee to cater for the expense of confirming that your insurance product is up to par. In addition, some insurers will cough up this charge on your behalf to win you over to their product. This should be always in your mind as you look for a better insurance deal.
Many benefits are associated with buildings insurance but for starters, you need to identify the true worth of your home. Get the real value in terms of construction costs and if you are not sure about the sum insured, go online and use the free calculators to help you get the exact estimate of your sum insured.
The pertinent question that bugs most leaseholders of a flat is whether they need buildings insurance or not. Well, in such a situation, the property owner who is in possession of the freehold should insure the building.
Your solicitor will advise you on the lease agreements as well as the buildings insurance. While it may not be your responsibility to insure the building, you will have a responsibility to chip in, in terms of premiums in the course of your service charge.
Honesty is the best policy when buying insurance cover. Disclose as much vital information as you can. Withholding potential information may automatically invalidate a policy should you want to make a claim.
Comments